NVIDIA Adds New Taiwan Suppliers Amid “Explosive” Blackwell Demand, Plans To Ramp Up Production
NVIDIA is currently experiencing what could only be described as explosive demand for its Blackwell AI products, prompting the company to place additional orders with TSMC and engage new Taiwanese suppliers. The semiconductor giant finds itself in a precarious situation trying to balance the burgeoning demand for its latest architecture. As a testament to the fervent competition among major tech firms for cutting-edge technology, NVIDIA has broadened its manufacturing strategy to include new partnerships, particularly focusing on Taiwanese firms such as KYEC and ASE Technology. These companies have recently emerged as significant contributors to NVIDIA’s supply chain, now at a testing phase before an anticipated transition to mass production.
KYEC and ASE Technology are reportedly observing a substantial surge in order placements from NVIDIA, with their order volumes purportedly doubling in recent quarters. This increase is a clear sign of NVIDIA’s aggressive push to meet market demands. In tandem with this strategy, NVIDIA has also encouraged TSMC, a longstanding partner, to enhance its production capabilities. Despite TSMC’s concerted efforts to escalate its chip packaging capacities, the supply remains insufficient to cater to NVIDIA’s ambitious needs.
The challenge of meeting NVIDIA’s demand is further compounded by the complex manufacturing requirements of the Blackwell products. These are far more elaborate than the company’s previous generation, known as Hopper, posing both a challenge and an opportunity for manufacturers. This complexity translates to higher Average Selling Prices (ASPs) and gross margins, a dynamic that manufacturers view favorably. According to analyses by TrendForce and other market research entities, NVIDIA is on track to dispatch millions of Blackwell products by the year 2025. Such forecasts underline the immense scale of demand NVIDIA is gearing up to fulfill.
Taiwan has solidified its role as a pivotal hub in NVIDIA’s strategic outlook for the future. The addition of key Taiwanese companies to its supply chain not only helps NVIDIA in scaling its production capabilities but also diversifies its manufacturing base. Both KYEC and ASE Technology have shown enthusiasm towards this development, signaling a prosperous collaboration ahead. As NVIDIA continues to expand its footprint in the AI and GPU markets, the industry awaits the wide-scale deployment of Blackwell AI GPUs and servers. The potential impact of these advanced technologies on mainstream sectors is poised to be significant, marking a new chapter in NVIDIA’s ambitious journey.
